Chapter 9

Question 1

What are the main methods of discharging a contract

Answer 1

(1) performance (2) breach (3) agreement between the parties (4) frustration

Question 2

Explain complete performance in terms of discharging a contract

Answer 2

Each party fulfills exactly what was agreed upon in the contract.

Question 3

Explain substantial performance in terms of discharging a contract

Answer 3

Occurs when one party fulfills enough of their contract obligations to warrant payment, with possible deductions for unmet aspects.

Question 4

Describe when a breach of contract will relieve the opposite party from its obligations

Answer 4

Conditions vs Warranties - breach of a conditions (a major term) relieves the non-breaching party from further performance, while breach of warranty (a minor term) does not.

Question 5

Explain what tender of performance is

Answer 5

When one party is ready, willing, and able and attempts to perform but performance is refused by the other party.

Question 6

What happens when one party refuses to pay for an attempted performance in a contract

Answer 6

Person who attempted performance may sue for damages

Question 7

Explain what a fundamental breach of contract is

Answer 7

A breach that goes beyond to the very root of the contract—one party is denied the benefit it bargained for in the contract.

Question 8

Explain what refusal to perform (repudiation) is

Answer 8

One party indicates to the other an intention to abandon and altogether to refuse performance of the contract

Question 9

Explain how a contract may be discharged by mutual agreement

Answer 9

Both parties consent to end the contract with or without additional consideration

Question 10

Explain how a contract may be discharged by novation

Answer 10

All parties agree to substitute a new party for one of the original parties to the agreeent

Question 11

Explain frustration in discharging a contract

Answer 11

An unforeseen event substantially changes the contracts nature or makes it impossible to perform

Question 12

What are the effects of frustration in discharging a contract

Answer 12

obligations are discharged and losses lie where they fall unless legislation or the contract states otherwise

Question 13

Explain what a force majeure clause is

Answer 13

Spells out who bears the risk if certain events occur

Question 14

Explain how the court treats a victim of breach

Answer 14

Restored to all original positions or in the position they would have been in if the contract had been properly performed

Question 15

Describe how damages for breach of contract are assessed

Answer 15

Foreword-looking damages: courts compensate the non-breaching party for the loss they suffered due to the breach.

Question 16

What is the equitable remedy available when specific performance was an issue within a contract

Answer 16

The court orders the breaching party to fulfill their contractual obligations when damages are inadequate

Question 17

Give an example of a discharge by performance

Answer 17

A contractor completes a home renovation exactly as specified in the contract, which discharges the contract by performance.

Question 18

Give an example of breach of contract

Answer 18

If a caterer fails to provide food for an event, this constitutes a breach of a condition, and the client is no longer obligated to pay.

Question 19

Give an example of discharge by agreement

Answer 19

A landlord and tenant mutually agree to end a lease early, releasing each other from the remaining obligations.

Question 20

Give an example of frustration of contract

Answer 20

A concert hall burns down before an event, frustrating the contract between the event organizer and the hall owner.

Question 21

Give an example of damages for breach of contract

Answer 21

A business can be awarded damages for the loss of profits due to a suppliers failure to deliver key components on time.

Question 22

Give an example of specific performance as an equitable remedy

Answer 22

A court orders a seller to complete the sale of a unique property as damages would not compensate for the loss of the opportunity to own that specific property

Question 23

Give an example of injunction as an equitable remedy

Answer 23

A court prohibits a former employee from working with a competitor due to a breach of their non-complete agreement.